Barkindo said that low oil prices remained sources of concern for producers and also to situations that are of concern for consumers tomorrow.

To reverse the declines in investment and output, he said it is vital to see a rebalanced market with sustainable stability, so that the industry can deliver the necessary investments for energy future. ”

In this regard, Barkindo stressed the need to keep in mind the link between the marginal cost, the price and investments.

He stated: “Of course, there are also many other ongoing and related challenges for oil markets, such as the uncertain prospects for the global economy; excessive speculation and the role of financial markets; the impact of geopolitics; advances in technology and their impacts on exploration and production; and environmental and sustainable development concerns.

“I see that many of these issues are on the agenda for subsequent sessions. I look forward to listening to the speakers, and playing an active role in the discussions.

“Given that the oil industry is highly capital-intensive and with long-lead times for projects, stability is vital. That is not to say that we can rid the market of cycles altogether – these have been part of the modern oil industry since the first successful oil drilling by Edwin Drake in Pennsylvania in 1858. But we need to ensure that we all do everything we can to reduce the length of downturns, lessen any volatility, and further enhance energy data transparency.

“For example, global exploration and production spending fell by around 26 per cent in 2015, and a further 22 per cent drop is anticipated this year. Combined, this equates to a loss of more than $300 billion”.